China, Semiconductor Companies

Shares of semiconductor giant Intel (INTC) fell by 9.1% to $29.76 on January 15, 2016, after the firm raised concerns about its sales growth and suppliers. Intel projects 1Q16 revenue at $14.1 billion—lower than analysts’ estimates. Intel attributed the lower guidance to falling PC (personal computer) sales in China (FXI). China is one of the biggest markets for Intel.

“Our team on the ground in China has gotten fairly cautious about what’s going on, ” said Stacy Smith, Intel’s CFO.

Intel also stated that the unit shipments of PC chips in 4Q15 fell by 16% YoY (year-over-year). Consumers in China prefer tablets that generally don’t contain Intel’s chips. They also buy products or models that use relatively cheaper Intel components.

As we stated above, China is one of the biggest markets for PCs. Analysts think that PC sales will be weak for calendar 2016. “The PC is not a good story in China, ” said Handel Jones, an analyst at International Business Strategies.

Source: finance.yahoo.com

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GSR Ventures is a venture
capital fund that invests primarily in early stage technology companies
with substantial operations in China.
China has some of the
world's largest and fastest growing technology markets. We strongly
believe that with large...

GSR Ventures is a venture
capital fund that invests primarily in early stage technology companies
with substantial operations in China.
China has some of the
world's largest and fastest growing technology markets. We strongly
believe that with large...

David Yuan joined Redpoint Ventures in 2005, as a principal and the
head of Redpoint China. David is based in Shanghai and focuses on
investment opportunities and portfolio development. David is a board
member of Cgen Media, China eNet and Leeuu Technology. He has...